There are many options for filing a tax return. You should review this information before filing your federal tax return.
The IRS will officially open the 2023 filing season for filing 2022 federal tax returns on January 23.
ALERT: if you submit your tax return prior to this date, it will be held until the filing season opens because the IRS needs to program computers with updates before the IRS can begin processing any returns.
But before you file that federal tax return, here are some steps to follow and information to consider.
Both the Taxpayer Advocate Service (TAS) and the IRS have several resources to help you gather the documents you need and prepare before you complete that tax form. Here are some of our favorites:
There are many options for filing a tax return. You should review these before making your final decision on how you will file. We recommend choosing an option where you can electronically file, as it is faster and safer. It also offers the benefit of identifying basic errors up-front in the filing process, as opposed to filing by paper, where it can take several weeks before you know if there is something that needs fixing.
Important note: When using e-file, you must sign your e-filed return electronically. You can sign using the Self-Select PIN or by using your prior-year Adjusted Gross Income (AGI).
We recommend reviewing the get help pages below for more information about filing:
If you choose to file a paper tax return, know that some IRS addresses have changed, so check Where to File on IRS.gov for active addresses before submitting payments.
There are several changes for tax year (TY) 2022 that may impact any refund you receive in 2023.
Along with changes in the number of dependents, employment/self-employment income, divorce, and other life factors, the IRS has outlined other items taxpayers should be aware of when filing their tax returns.
Visit the IRS’s Credits and Deductions page for more details.
IRS Postpones Implementation of $600 Form 1099-K Reporting Until 2024
On December 23, 2022, the IRS issued Notice 2023-10 delaying the implementation of new reporting requirements for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024.
The Notice creates a transition period of one year, postponing the $600 Form 1099-K threshold until the January 31, 2024, reporting date. In essence, the IRS is taking the rules back to the pre-March 2021 threshold ($20,000 and 200 transactions) for any calendar year beginning before January 1, 2023. The lower reporting threshold (any number of transactions totaling $600) remains in effect for calendar years starting after December 31, 2022.
This one-year delay does not apply to any of the other Form 1099-K rules not modified by the American Rescue Plan Act. In addition, the rules for reporting income are not changing. Anybody receiving taxable income through third-party networks must still track and report their taxable income.
Read the NTA Blog for more details of this ruling.
Tax laws and completing tax returns in certain circumstances can be complicated. Here are some resources should you need or want help:
The IRS advises that most taxpayers will receive their refunds within 21 days if:
However, the IRS cannot issue a refund that includes the EITC or Additional Child Tax Credit (ACTC) before mid-February. This includes the entire refund, not just the part that’s related to the EITC or ACTC claimed on the tax return. This is due to the 2015 PATH Act, a law which requires the IRS to hold those refunds to give the IRS time to validate them and protect against identity theft and refund fraud.
For those taxpayers claiming EITC and ACTC and filing their returns early, the IRS anticipates most EITC/ACTC-related refunds will be available by February 28 if the taxpayer:
Taxpayers should check Where’s My Refund? on IRS.gov for information about their personalized refund status. EITC/ACTC filers should show an updated status by February 18.
The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.
Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.
Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List.
